Islamic Banking gif
THE GROWING ISLAMIC FINANCE INDUSTRY IN
Bermuda
Author: Tasnim Nazeer, Global Islamic Finance Magazine Editorial Team, United Kingdom
Abstract: Bermuda is a growing hub for Islamic finance and banking investments and is a lucrative country for opportunities within the Islamic finance industry. The scope for the global Islamic finance industry is estimated to reach around $2 trillion dollars worldwide. The Sukuk and Takaful sectors of Islamic finance hold great prospects both in Bermuda and worldwide and many experts have encouraged Sukuk issuances in Bermuda due to its flexibility in accommodating laws to implement Islamic finance and banking in the coun- try. There are many advantages of investing in Shariah compliant bonds and other Islamic financial investments in the country of Bermuda. With Bermuda’s locality being located amongst the Atlantic Ocean and located off the east of the United States there is ample op- portunity to tap into the various Islamic financial ventures that are currently being exhibited within the country. This article is a must read for all business professionals, avid investors and industry professionals wishing to tap into the lucrative opportunities and learn more about the Islamic finance industry that is currently growing in Bermuda.
Keywords: Bermuda, Islamic Finance, Islamic Banking, Business, Investments, Shariah Compliancy, Investors
Bermuda an Attractive Choice for Islamic Finance Opportunities Bermuda is an increasingly popular choice for Shariah compliant investments and the Islamic finance and banking sector as a whole. The country has made Shariah com- pliant financing accessible as its laws permit the Islamic finance industry to operate freely within the country without any restrictions as is the case with other countries that of- ten have to wait for legislation to pass be- fore paving the way for Islamic finance and banking. Bermuda’s effectively thriving and solid regulatory framework has allowed the country to become a trusted jurisdiction for Shariah compliant financing.
Many investors are assured with Bermuda’s solid legislation which can be an excellent platform for structured finance transac- tions (such as Sukuk and wakala) and Sha- riah compliant funds (including musharaka). Bermuda has become one of the primary jurisdictions for Sukuk issuances backed by
Figure 1: Bermuda Third Largest GFP Per capita in the World
Bermuda US UK
World Average
$88. 747 $45.989 $35.165 $8.599
Information from: Business Bermuda
Figure 2: Lucrative Sector for Investments in Bermuda
Sukuk Takaful
Real state Infrastructure Energy & Resources
aircraft. Bermuda is also positioned to play a key role in the rapidly growing Islamic insur- ance, or takaful and retakaful sectors. The country of Bermuda has not only paved the way for Islamic finance through solid regu- lation and legislation which accommodates the industry but it is also a world renowned thriving offshore financial centre.
Bermuda has the third largest GDP per cap- ita in the world which is a major plus point for investors wishing to tap into the lucrative financial sectors in the country as outlined in Figure 1.
Christopher Dye, corporate legal counsel for BCB Charter Corporate Services, said with regard to the scope in Bermuda that, “The international business advantages of Ber- muda are well-known, including its long his- tory of political and economic stability, its tax neutral regime with an absence of corporate taxes and exchange control for international business, its leading position in the reinsur- ance industry, its proximity to the major finan- cial centres of the east coast of the United States, and its British common law tradition with final appeal to the United Kingdom. Per- haps above all, its ability to adapt traditional structures such as insurance companies and trusts with purpose-specific laws and regulations makes Bermuda anattractive ju- risdiction for new financial structures, such as thoseused in Islamic financing.”
The government in Bermuda have worked hard in order to create Bermuda’s thriving fi- nancial industry in the country as it has cre- ated an attractive jurisdiction which would be ideal for the Islamic finance industry and investors alike. Many other investors who
2012 May Global Islamic Finance 43
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